Calculate sales commission with flat rate, tiered, or fixed amount per sale structures.
Commission = Sales Amount × Commission Rate. For example, $10,000 in sales at 5% commission = $500 earned.
Tiered commission applies different rates to different portions of sales. For example, 5% on the first $10K, 7% on the next $20K, 10% above $30K.
Rates vary widely: retail 1-5%, SaaS 10-20%, real estate 2-6%, insurance 10-25%. It depends on industry, product, and experience.
Commission is typically a percentage of sales revenue. A bonus is a fixed amount based on hitting targets or KPIs.
Total earnings = Base salary + (Sales × Commission rate). For example, $50K base + ($200K × 10%) = $70K total.
In most structures, commission is zero if there are no sales. Some draw-against-commission structures can create clawback situations.
A draw is an advance on future commissions. You receive a guaranteed minimum, and commissions earned first pay back the draw amount.
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